Customer Behavior in Accordance with the HBS Curriculum

Marcelo Serafim
Sep 2
4 min read

At Harvard Business School (HBS), the study of customer behavior is considered one of the pillars of marketing education. The curriculum emphasizes not only understanding how customers think and act but also how companies can strategically respond to those behaviors. This focus prepares students to make real-world decisions about product development, pricing, branding, and communication strategies.

Customer behavior refers to the study of the psychological, social, and economic factors that influence individuals when they purchase and use products or services. At HBS, students explore case studies involving global brands such as Apple, Amazon, and Procter & Gamble. These cases allow them to evaluate the motivations behind consumer decisions, the impact of marketing campaigns, and the role of cultural trends in shaping buying patterns.

One essential concept taught in the Required Curriculum is segmentation, targeting, and positioning (STP). Segmentation divides the market into smaller groups of customers with similar needs. Targeting focuses on selecting the most attractive groups to serve, while positioning establishes how a brand should be perceived in comparison to competitors. HBS students learn how understanding consumer behavior is critical in making these STP decisions effective.

Another important dimension is consumer psychology. Students examine how factors such as perception, motivation, and attitudes influence purchasing behavior. For example, the way a consumer perceives value in a luxury product may be completely different from how they evaluate a commodity. Understanding these differences enables businesses to tailor their messaging more effectively.

HBS also places strong emphasis on decision-making processes. Customers often follow a sequence: recognition of a need, information search, evaluation of alternatives, purchase, and post-purchase evaluation. By analyzing this journey, managers can identify opportunities to improve customer satisfaction and build long-term loyalty.

In addition to psychology, social and cultural influences play a key role. Students discuss how reference groups, social media communities, and cultural norms shape consumer behavior. For instance, peer influence on platforms like Instagram or TikTok can drastically alter the way customers perceive products. Understanding these dynamics is vital in the age of digital marketing.

The HBS curriculum also highlights the use of data and analytics in analyzing customer behavior. With digital tools, companies can track click-through rates, browsing history, and purchase data. However, students are encouraged to go beyond the numbers and consider the human story behind the data, blending quantitative analysis with qualitative insights.

Case studies further illustrate how companies succeed or fail based on their understanding of customer behavior. For example, when Netflix shifted from DVD rentals to streaming, it relied heavily on predicting consumer preferences. Similarly, when Coca-Cola attempted to introduce “New Coke,” the failure was partly due to a misunderstanding of customer attachment to the original product.

Students also learn about ethical considerations in consumer analysis. While behavioral insights can be used to improve customer experiences, they can also be exploited to manipulate buyers. At HBS, students debate where to draw the line between persuasion and manipulation, emphasizing the importance of responsible marketing practices.

Ultimately, analyzing customer behavior is about connecting business strategies with human needs. HBS teaches that successful leaders must be able to interpret consumer signals, predict future trends, and design solutions that add genuine value to customers’ lives. By combining theory, data, and real-world cases, students graduate with the ability to understand and anticipate customer behavior in a rapidly changing marketplace.

❓Questions

Why is understanding customer behavior considered a central part of the HBS marketing curriculum?
What role does segmentation, targeting, and positioning (STP) play in analyzing consumer behavior?
How can consumer psychology affect the way people perceive products?
What lessons can be learned from the case of “New Coke”?
Why is it important to balance analytics with ethical considerations when studying customers?

📘 Vocabulary Section

Segmentation – the process of dividing a market into smaller, distinct groups of consumers.
Positioning – the strategy of creating a distinct image of a brand in the customer’s mind.
Perception – the way individuals interpret and make sense of information.
Commodities – basic goods that are interchangeable with others of the same type.
Reference Groups – social groups that influence an individual’s attitudes or behaviors.
Analytics – systematic computational analysis of data or statistics.
Quantitative – related to numerical or measurable data.
Qualitative – related to descriptive, non-numerical information.
Manipulation – unfair control or influence over someone’s decisions.
Anticipate – to expect or predict something before it happens.

🔤 Phrasal Verb

“Figure out” – to understand or solve something.

Example 1: Companies must figure out why customers prefer one brand over another.
Example 2: She is trying to figure out the best marketing strategy for her new product.

🇺🇸 American Idiom

“The customer is always right” – a popular business expression meaning that companies should prioritize customer satisfaction.

Example: Even if the client was mistaken, the manager remembered that the customer is always right and handled the complaint politely.

✍️ English Grammar Tip

Using the Present Simple vs. Present Continuous in Business Contexts

Present Simple is used for general truths: “Customers usually buy more during the holiday season.”
Present Continuous is used for current trends or actions happening now: “Customers are increasingly using mobile apps to shop.”👉 Tip: In customer behavior analysis, be careful to distinguish between permanent behaviors (simple) and temporary trends (continuous).